Nvidia’s Q3 Results Test AI Bubble Concerns
Investors await Nvidia’s Q3 earnings amid rising AI bubble fears and questions around Chinese market access and AI infrastructure spend.
Nvidia’s Q3 earnings are poised to shape market sentiment. Investors face renewed concern over AI sector overheating amid signs of slowing growth and geopolitical uncertainty.
What We Know
Nvidia is set to announce its fiscal Q3 results for the period ending October 26, 2025, on November 19, after markets close, likely around 1:20 pm PT (9:20 pm GMT). Analysts expect earnings per share of roughly $1.25 to $1.29 and revenue near $54.8–$56.2 billion, reflecting over 50% year‑on‑year growth. Momentum in bookings remains high: the company’s CEO has confirmed $500 billion in orders for its Blackwell AI chips through 2026.
Yet sentiment has soured. Nvidia shares have slid about 8–10% in November after a 1,200% rally over the past three years. Institutional investors including SoftBank and Peter Thiel’s hedge fund have recently divested their Nvidia holdings. Broader AI sector corrections and worries over inflated valuations have weighed on tech indices, which rallied sharply earlier in 2025.
What It Means
The upcoming earnings report carries outsized importance. As a major AI bellwether, Nvidia's performance will influence broader market confidence in AI investments. Strong results and guidance could counter bubble fears and reaffirm faith in sustained chip demand. Weak or cautious guidance, by contrast, could trigger further downside across the sector amid concerns over capex sustainability, geopolitical headwinds, and macroeconomic uncertainty.
The Backstory
Market anxiety stems from a cascading re-evaluation of sky-high valuations in tech and AI. Broad-based sell-offs in November have been fueled by concerns over an AI bubble, prompting investors to demand evidence of durable profitability. US export restrictions to China—historically a key growth market for Nvidia—have compounded the uncertainty. At the same time, major AI spenders could temper infrastructure investments amid macro strain, exposing Nvidia to concentrated risk.
What’s Next
Markets will closely dissect Nvidia’s gross margin, future revenue guidance, and commentary on chip deployment and customer spending trends. Upcoming strategic clarity on China market access will also draw attention. Depending on results, analysts may revise forward estimates and reposition exposure to AI-dependent equities.
